Reuters reported that shares of ArcelorMittal South Africa jump almost 5% as a turnaround in Chinese demand bolsters iron ore and steel prices.
A steep drop in steel inventories held by Chinese traders may trigger a stronger price recovery than usual at the start of next year as they rush to restock.
Mr Kevin Algeo a trader at Johannesburg-based Imara SP Reid said that "After a bad year, ArcelorMittal is also benefitting from the increased certainty of a renewed iron ore supply agreement with Kumba Iron Ore's Sishen mine."
Kumba will supply the local unit of ArcelorMittal with up to 4.8 million tonnes of ore at USD 65 per tonne next year as the companies try to resolve a pricing dispute.
The interim deal will be valid until the end of December 2013 or until a legal process between the two parties is concluded, whichever is sooner.
